Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Interview Partners to connect and practice with!
Back to overview
Anonymous A
on Dec 09, 2020
Global
Question about

Just wondering why increasing prices is an answer option here for disposable pens?

The question asks that since sales are flattening what suggestions would you make to increase revenue - so would increasing the price of disposable pens, not really a differentiated product, be an option to increase revenue? 

2
1.1k
6
Be the first to answer!
Nobody has responded to this question yet.
Top answer
Ian
Coach
on Dec 09, 2020
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Hi there,

You're not wrong in regards to when/how you can/can't increase prices.

However, why would you eliminate it so quickly? A good framework encapsulates all reasonable options! As such, you should consider price increases, even if you note that it is unlikely (unlikely, but still worth investigating IF other, more likely, options don't pan out). Importantly, we do not know if we are the only supplier of pens or not. You have made that assumption...but we might be a monopoly and therefore be able to charge a different price. You can't just eliminate it without checking!

As you see, the case evaluates whether the company can go into the premium market. This is a price increase and may only require a slight rebranding or modification of the pens...it's worth investigating!

Just to clarify again, it's unlikely to be able to increase prices, but it's worth looking at. We need to measure the elasticity of demand and see the competitive landscape before we make this determination.

Clara
Coach
on Dec 10, 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

Thinking about this OUTSIDE the case, since this is a good lesson for casing in general: increasing the price of somthing without improving the value proposition is NEVER going to work. Hence, you will never fix a revenue issue like this: not in this case, or any other. 

Hope it helps!

Cheers,

Clara

Similar Questions
Consulting
Just did the Mckinsey Solve Game (January 2025) - got some questions/insights
on Apr 24, 2025
Global
5
3.3k
Top answer by
Hagen
Coach
#1 recommended coach | >95% success rate | 8+ years consulting, 8+ years coaching and 7+ years interviewing experience
36
5 Answers
3.3k Views
+2
Consulting
Employment Gap on Resume and How to talk about it during Interview
on Apr 14, 2025
Global
9
7.8k
Top answer by
Ariadna
Coach
BCG | Project Leader and Experienced Interviewer | MBA at London Business School
110
9 Answers
7.8k Views
+6
Consulting
How should I explain a change in course at university? Will it be asked of me?
on Apr 14, 2025
Global
10
3.4k
Top answer by
Alessa
Coach
xMcKinsey & Company | xBCG | +200 individual & group coachings | feel free to schedule a 15 min intro call for free
81
10 Answers
3.4k Views
+7
How likely are you to recommend us to a friend or fellow student?
0 = Not likely
10 = Very likely
Thanks for your feedback! Your opinion helps us make PrepLounge even better.